The European Union (EU) will create a special entity to facilitate business with Iran and avoid the sanctions imposed by the US after its exit from the nuclear agreement with Tehran.
The EU High Representative for Foreign Affairs and Security Federica Mogherini announced the development here on Monday after a meeting between Iran and the five powers that continue to support the pact, Russia, China, France, the UK and Germany, reports Efe news.
The Foreign Ministers of the remaining countries and Iran reiterated their willingness to continue implementing the agreement at the meeting, despite the US withdrawal.
In a joint statement read by Mogherini and Iranian Foreign Minister Mohammad Javad Zarif, the participating parties recalled that Tehran has shown that it continues to fulfill its part of the nuclear agreement.
The five powers also pledged its commitment to promote "legitimate business" with Iran, as had been set in the pact and discussed "practical solutions" to the unilateral withdrawal of the US and its reimposition of sanctions that had been lifted with the agreement sealed in 2015.
"Mindful of the urgency and the need for tangible results, the participants welcomed practical proposals to maintain and develop payment channels, notably the initiative to establish a special purpose vehicle to facilitate payments related to Iran's exports, including oil, and imports," Mogherini said alongside Zarif.
Mogherini explained that the EU's decision to create this entity will be further addressed in detail during further technical meetings in the following days.
The mechanism will facilitate transactions with Iran and allow European companies to continue their trade with Iran in accordance with EU rules, she said.
The entity could also be open to other international partners who wish to use it, Mogherini added.
Over the past few months, Brussels has already taken some steps to protect European companies from US sanctions against Iran and allow them to continue doing business there.
Earlier this year, US President Donald Trump decided to withdraw his country from the nuclear agreement and reimpose a series of sanctions that had been lifted, which could affect companies from other countries dealing with Tehran or lead them to withdraw their businesses from Iran to avoid problems with Washington.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)